Will Apple Inc (NASDAQ:AAPL) Follow Verizon Communications Inc (NYSE:VZ)?
On Thursday, Verizon Communications Inc (NYSE:VZ) reported very strong Q3 results with its 40% profit rise which topped its projections. Growth in the wireless segment stood a little below analysts’ estimates but Verizon Communications Inc (NYSE:VZ)’s Vodafone Group venture showed very strong profit with revenue on the rise even as customers seem to be splurging on data services. The company has now agreed to acquire Vodafone’s 45% stake in the deal, which amounts to $130 Billion. Verizon Communications Inc (NYSE:VZ) reported a Q3 profit of $2.23B or 78 cents/share in comparison with the $1.59B or 56 cents that it stood at a year ago.
The iPhone’s popularity
The once worrying factor was the subscriber shortfall and Verizon Communications Inc (NYSE:VZ) has been losing out on market share to competitors like T-Mobile U.S. Analysts have stated that though the company’s financials have been impressive the resurgent TMUS has been affecting Verizon. Francis J. Shammo, the company’s new CFO said that this subscriber shortfall is primarily due to Apple Inc (NASDAQ:AAPL)’s iPhone 5S shortage. This device accounts for almost 50% of the company’s smartphone activations and represents around 3.9M iPhone activations.
Over the past 6 quarters, an average of 11.6% of Apple Inc (NASDAQ:AAPL)’s total iPhone shipments have been attributed to Verizon Communications Inc (NYSE:VZ). Apart from the 3.9M iPhone activations that took place in the September quarter, the company accounted for 12.2% share of the total iPhone units in the previous quarter.
Apple Inc (NASDAQ:AAPL)’s 2013 Q4 includes more than a week of iPhone 5S and 5C phones. Both these smartphones hit the shelves in September and within the first 3 days of launch, a record 9 million handsets had been sold. The company will disclose the exact number of iPhones that it has shipped in the September-quarter, in its quarterly earnings-report that is slated to be released after the close of markets on 28 October.